iAll UK
How do I get a DMP?
A debt management plan (DMP) is a payment plan arranged with the people you owe. As a charity we offer free DMPs. Some debt management companies charge for them.
A debt management plan is usually arranged for you by a third party provider. Such as a debt charity or debt management company.
We can look at your situation and help you work out a budget. This will show if a DMP is the right solution for you.
We can arrange a free DMP if it is right for you. There are no hidden charges.
A DMP works like this:
- You make a single monthly payment to the DMP provider
- They contact all the people you owe
- They send each of them a share of your monthly payment
Keep up to date with your DMP online. We send you a monthly statement showing how much you paid to each of the people you owe.
What are the benefits of a free DMP?
- Your full payment goes toward paying off your debts
- This means it takes less time to become debt free
All DMPs work in the same way. There are no extra benefits or protection by choosing a DMP with fees.
Whether you choose a free or fee-charging DMP, you need to consider:
- How a DMP could affect your credit rating
- How much debt you have to repay
- How long it will take to repay
Use our free online debt advice tool to find out if a DMP is right for you.
What are DMP fees paying for?
The fees you pay a fee-charging DMP provider cover the costs of:
- Setting up your plan
- Dealing with your monthly payments
- Providing you with statements
- Reviewing your plan
A non-profit DMP provider does all of these things for free.
The fees charged by for-profit DMP providers vary. They are typically around 17% of your monthly payment.
Before you start a DMP with a company that charges you, make sure you:
- Find out what you are paying for
- Work out how much of your monthly payment will go towards your debts
Can I switch to a free DMP?
You should be able to switch to a free DMP if you are paying for one now.
Check the agreement with your current provider to see if there are any charges or a notice period involved with moving.
We need to look at your situation to make sure a DMP is the best solution for you. We can set one up for free if it is right for you.
